Advisers are now more concerned about the potential backlash from recommending funds subsequently accused of greenwashing than the products’ performance, according to research from Boring Money.
Over two-thirds of advisers are worried about being caught up in the fallout if they recommend products that aren't as green as they are marketed as, with 20% saying they are ‘very concerned' about the risk and a further 49% admitting they are ‘somewhat concerned'. In the past a key concern for advisers has been how the performance of green funds stacks up against their mainstream peers, but Boring Money CEO Holly Mackay said it is no longer performance putting advisers off recommending sustainable funds, it is this reputational risk. Boring Money: Asset managers 'marking own homework...
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